REQUISITE OF CONTRACT Elements Of Contract • • • Consent of the contracting parties Object of the certain which is the subject matter of the contract Cause of the obligation which is established Consent - Is the conformity of wills of the contracting parties upon the object and cause as well as to the other terms and conditions of the contract. If the acceptance by the offeree is qualified, it become counter offer hence, there is no consent unless the offer accepts the counter offer unqualifiedly. If the offer is uncertain or indefinite, or that the acceptance is not absolute there is no meeting of the mind, hence the contract. Offer ▪ It is a promise of money or another valuable thing from a promisor in exchange for a promise's performance. ▪ If the acceptance by the offeree is qualified, it become counter offer hence, there is no consent unless the offer accepts the counter offer unqualifiedly. If the offer is uncertain or indefinite, or that the acceptance is not absolute there is no meeting of the mind, hence the contract. Acceptance made through letters, etc. - Acceptance should be made right after the offer has been made or immediately thereafter. Acceptance made through letters or telegrams does not bind the offeror except from the time it comes to his knowledge. Rule on offer an acceptance - The offer has the inherent right to fix the time, place and manner of acceptance. Likewise, the offeror may give the offeree a period within which to accept the offer. Within this period, the offeror may withdraw the contract. However, when the offeree has paid or promised the offeror a consideration for granting of a period within which to accept, the offeror cannot revoke the contract. When offer become ineffective - An offer may become ineffective if before its acceptance by the offeree, the offeror will die or suffer civil interdiction. - If any of these circumstances occur after the acceptance has been made, the contract will continue to have force and effect but the rights and obligations will be transferred to the heirs and assigns of the parties. Offer made through agent -Accepted from the time acceptance is communicated to him by the offeree. Published advertisement not an offer -Business advertisement of things which are for sale in newspaper ads or media are not definite offers by mere invitations to make offer. A person who cannot give consent - Consent can only be given by persons who have the capacity to act. - If given by the persons without the capacity to act or with disqualifications, their consent may not give birth to the contract. Vices of consent -The law enumerate 5 causes by which consent may be vitiated or rendered defective. These are mistake, violence, intimidation, under influence and fraud. Mistake rendering contract defective -In order that mistake may invalidated consent, it should refer to the substances of the things which is he object of the contract, or to those conditions which have principally moved one parties to enter into the contract. Mistake in substance - Takes place when both parties thought that the subject matter they are dealing into does not turn out to be what it exactly is. Mistake of identity or qualification - Takes place when one party enters into the contract primarily because of such identity or qualification of the other party which is not actually the case. Circumstances not indicative of mistakes - There is no mistake if the party alleging it knew of the doubt, contingency, or risk affecting the object of the contract. Mistake of fact and mistake of account distinguished. - If the mistake of account is committed the remedy s not annulment of the contract but correction of the account. If mistake of account is committed by remedy is not annulment of contract but correction of the contract. Legal protection to the weak party - Article 1332 of then code states that when one of the parties is unable to read, or if the contract is written in a language not understood by him, and mistake is alleged, the person enforcing the contract must show that the terms thereof have been fully explained to the former before execution. Failure to do so will render the contract voidable. Violence And Intimidation Explained Violence - Is an external act characterized by the employment of serious and irresistible force by one party or a third party for his account in order to secure the consent of the other party to the contract. Employment of violence by a party or by a third party for his account renders the contract voidable. Intimidation - When one of the contracting parties is compelled to give his consent on account of a reasonable and well-grounded fear of an imminent and grave peril employed by other party or a person or property of his spouse, descendants and ascendants. Degree of Intimidation - In order to determine the degree of intimidation the circumstances of age, sex, and condition of the person intimidated shall be borne in mind. Undue influence - -When a person takes improper advantages of his power over the will of another, depriving the letter of a reasonable freedom of choice. Undue influence - Confidential Family Spiritual And another relations between parties, or from the fact that the person alleged to have been unduly influenced was suffering from menta weakness or was ignorant or in financial distress. Fraud In Contract - There are fraud when through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not agreed to. 2 Kinds of Fraud Fraud of or Before the Perfection of Contract (Dolo Causante) -Which when committed renders the contract voidable. Fraud after the Perfection of Contract (Dolo Incidente) -Which does not cause the validity of the contract. Instances not constituting fraud 1. Usual exaggeration in trade - It is an admitted fact that dealers or merchants exaggerate their wares to insure the immediate sale of their products. 2. Expression of a favorable opinion - A mere expression of an opinion by a party does not signify fraud, unless the same is made by an expert and the other party relied on the former’s special knowledge. 3. Misrepresentation made in good faith - A misinterpretation made in good faith is not fraudulent but may constitute error. This means that a misinterpretation based on an erroneous belief and without intent to take undue advantage to other party will not void the contract. 4. Misrepresentation by a third person - Misinterpretation by third party does not vitiate consent unless the same has created substantial mistake and the same is mutual. Duty to disclose material facts - When there is a duty to disclose facts as when they are bound by confidential relations like that of lawyer and client or principal and agent, failure of the knowledgeable party to reveal such information amounts to fraud, hence the contract is rendered voidable. Simulated contract - When it is fictitious or pretended in order to defraud the creditor or mislead to general public. Absolutely Simulated Contract - Takes place when the parties does not intend to be bound at all, hence the contract is void and inexistent as there is no consent or cause although the object is certain. Relatively Simulated contract - Takes place when the parties concealed their true agreement. In this instance the contract is void but not as the real agreement of parties. This kind of simulation takes place when the contract entered into is merely to mislead the public on the effects of their real contract. Group 3 Agner, Kris Ecal, Fraulien Mitch Juliano, Ivy Ladan, Evelyn
